A coal hauling truck has a net cost of 85000 it has an, Business Economics

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A coal hauling truck has a net cost of 85000 it has an

A coal hauling truck has a net cost of $85,000. It has an expected service life of 250,000 miles at which time it will have a $5,000 salvage value. Your company uses the units-of-production method to calculate depreciation.

a) Calculate the allowed depreciation amount after 55,000 miles.

b) What is the book value after 55,000 miles?

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